SUMMER TRAINING PROJECT REPORT

ON
Study of Stock Exchange At TATA SECURITIES

FOR THE PARTIAL FULFILMENT OF THE DEGREE

MASTER OF BUSINESS ADMINISTRATION

(TWO YEAR FULL TIME MANAGEMENT COURSE)

Batch (2013-2015)

SUBMITTED BY

PREETI VERMA

MBA SEM II

RTU Roll no. 13MMJXX623

UNDER THE GUIDANCE OF:

MISS SHAKHA SINGH

SUBMITTED TO:

Faculty of management studies

Maharishi Arvind School of management studies
(affiliated to Rajasthan technical university)
 DECLARATION BY THE STUDENT

I PREETI VERMA D/O MR. HANUMAN PRASAD KUMAWAT student of MBA

SEM-3 (2014-15) Hereby declare that I have completed a project as Summer trainee on the topic
Study of Stock Exchange At TATA SECURITIES for the partial fulfilment of the degree of
MBA course ,it is my original work and it has not been copied from others.

Place;-
Date; SIGNATURE
PREETIVERMA
TABLE OF CONTENTS

S. NO.
TOPICS Page no.
1. EXECUTIVE SUMMARY 4
2. INTRODUCTION TO TOPIC 5
3. BOMBAY STOCK EXCHANGE 6
4. NATIONAL STOCK EXCHANGE 7
5. STOCK EXCHANGE 8
6. TATA SECURITIES 9
7. DEMAT SERVICES 14
8. CLIENT FOCUS 16
9. WIDE OPTION WHILE TRADING 21
10. TRADING DERIVATIVES 25
11. STOCK MARKET 32
12. HISTORY 33
13. IMPORTANCE OF STOCK MARKET 34
14. BEHAVIOUR OF STOCK MARKET 37
15. MARGIN BUYING 43
16. BASIC RISK IN TRADING 47
17. FINDING AND RECOMMONITION 51
18. CONCLUSION 53
19.
BIBLIOGRAPHY
 ACKNOWLEDGEMENT

I would like to express my heartfelt thanks to many people. This dissertation is an effort to
contribute towards achieving the desired objectives. In doing so, I have optimized all available
resources and made use of some external resources, the interplay of which, over a period of time,
led to the attainment of the set goals.
I take here a great opportunity to express my sincere and deep sense of gratitude to my esteemed
faculty MISS VISHAKHA SINGH for giving me an opportunity to work on this project. The
support & guidance from sir, was of great help & it was extremely valuable.
I also express my sincere thanks to all the people who, directly or indirectly, contributed in time,
energy and knowledge to this effort.

Your name
Preeti verma

1
 PREFACE

The microstructure of the stock market in which brokers work is highly Dynamic and volatile.
Many stocks are available to be bought and sold, each exhibiting its own patterns and
characteristics that are highly unpredictable. With so many options and considerations that need
to be taken into account, it is an extremely difficult task for a broker to investigate aspects of the
stock market and consistently provide effective Advice to their clients.
Thus, brokers perform their day-to-day tasks with the aid of a broker system. Such a system
should provide tools for interacting with Exchanges and performing analysis. As a consequence,
these broker Systems are quite large and complicated by themselves. This research aims to
analysis Stock broker on the basis of their Services, products, growth, and their competitiveness.
Because Stockbrokers are one of the main participants in stock exchanges Worldwide, they often
act as an agent for their clients, making trades on their behalf. They also act as advisors,
providing suggestions to their Clients on what stocks to buy and sell.

2
 EXECUTIVE SUMMARY

STUDY OF STOCK EXCHANGE AT TATA SECURITIES LIMITED

There is growing competition between brokerage firms in post reform India. For investor it is
always difficult to decide which brokerage firm to Choose.
Research was carried out to find which brokerage house people prefer and to figure out what
people prefer while investing in stock market. This study suggests that people are reluctant while
investing in stock and Commodity market due to lack of knowledge.
Main purpose of investment is returns and liquidity, commodity market is less preferred by
investors due to lack of awareness. The major findings of this study is that people are interested
to invest in stock market but them Lack knowledge. Through this report we were also able to
understand, what our Companys (Tata securities) positive are and strong points, on the basis of
which we come to know what can be the basis of pitching to a potential Client.
At the end of the report limitations, SWOT analysis, conclusion of the research and Appendix
which includes questionnaire and the list of the city where the Argent capital are running. Last
there is Bibliography, FAQ, and Glossary that has the technical terms of the report.
 3
INTRODUCTION TO TOPIC

In most industrialized countries, a substantial part of financial wealth is not managed directly by
savers, but through a financial intermediary, which implies the existence of an agency contract
between the investor (the principal) and a broker or portfolio manager (the agent). Therefore,
delegated brokerage management is arguably one of the most important agency relationships
intervening in the economy, with a possible impact on financial market and economic
developments at a macro level. In most of the metros, people like to put their money in stock
options instead of dumping it in the bank-lockers. Now, this trend pick pace in small but fast
developing cities like Chandigarh, Gurgaon, Jaipur, Ambala etc. My research is based on the
residents of jaipur and its nearby areas. As the per-capita-income of the city is on the higher
side, so it is quite obvious that they want to invest their money in profitable ventures. On the
other hand, a number of brokerage houses make sure the hassle free investment in stocks. Asset
management firms allow investors to estimate both the expected risks and returns, as measured
statistically.

There are mainly two types of Portfolio management strategies.

1. Passive Portfolio Strategy
2. Active Portfolio Strategy

1. Passive Portfolio Strategy: A strategy that involves minimal expectation

Input, and instead relies on diversification to match the performance of
Some market index. A passive strategy assumes that the marketplace will
Reflect all available information in the price paid for securities

2. Active Portfolio Strategy: A strategy that uses available information and

Forecasting techniques to seek a better performance than a portfolio that is
 4

.
5
 6

BOMBAY STOCK EXCHANGES:

This stock exchanges, Mumbai, popularity known as BSE was established in 1875 as The
native share and stock brokers associations, as a voluntary non-profit making association.

It has an evolved over the years into its status as the premiere stock exchanges in the country. It
may be noted that the stock exchanges the oldest one in Asia, even older than the Tokyo Stock
Exchanges, which was founded in 1878.

The exchanges, while providing an efficient and transparent market for trading in securities,
upholds the interests of the investors and ensures redressed of their grievances, whether against
the companies or its own members brokers.

It also strives to educate and enlighten the investors by making available necessary informative
inputs and conducting investors education programmers.

A governing board comprises of elected directors, 2SEBI nominees, 7 public representatives and
an executive director is the apex body, which decides the policies and regulates the affairs of the
exchanges.

The executive director as the chief executive officer is responsible for the day today
administration of the exchanges. The average daily turnover of the exchange during the year
2000-01 (April-March) was Rs 3984.19 crores and average numbers of daily trades 5.69 Lakhs

However the averages daily turnover of the exchanges during the year 2001-2002 has declined to
Rs. 1224.10 crores and number of average daily trades 5.69 Lakhs.

The average daily turnover of the exchanges during the year 2001-2003 has declined and number
of average daily trades during the period is also decreased.The Ban on all deferral products like
BLESS AND ALBM in the Indian capital markets by SEBI with effect from July 2, 2001,
abolition of account period settlements, introduction of compulsory rolling settlements in all
scripts trades on the exchanges.With effect from dec31, 2001 etc. have adversely impacted the
liquidity and consequently there is a considerable decline in the daily turnover at the exchanges.
The average daily turnover of the exchanges present scenario is 110363 (Laces) and number of
average daily trades 1057(laces) 7
 8
NATIONAL STOCK EXCHANGES:

The NSE was incorporated is now 1992 with an equity capital of Rs 25 crores. The international
securities consultancy (ISC) of Hong Kong has helped in setting up NSE.
ISE has prepared the details business plans and installation of hardware and software system.
The promotion for NSE were financial institutions, insurances companies, banks and SEBI
capital markets Ltd, infrastructure leasing and financial services Ltd and stock holding
corporation Ltd.

It has been set up to strengthen the move towards professionalization of the capital market as
well as provide nation wide securities trading facilities to investors. NSE is not an exchange in
the traditional sense where broker own and manage the exchanges.

A two tier administrative set up involving a company board and a governing aboard of the
exchanges is envisaged. NSE is a national market for shares PSU bonds, debentures and
government securities since infrastructure and trading facilities are provided.

Stock Exchange
What is the role of a Stock Exchange in buying and selling shares?
The stock exchanges in India, under the overall supervision of the regulatory
authority, the Securities and Exchange Board of India (SEBI), provide a trading
platform, where buyers and sellers can meet to transact in securities. The
trading platform provided by NSE is an electronic one and there is no need for
buyers and sellers to meet at a physical location to trade. They can trade
through the computerized trading screens available with the NSE trading
members or the internet based trading facility provided by the trading members
of NSE.
What is Demutualisation of stock exchanges?
Demutualisation refers to the legal structure of an exchange whereby the
ownership, the management and the trading rights at the exchange are
segregated from one another.
How is a demutualised exchange different from a mutual exchange?
In a mutual exchange, the three functions of ownership, management and
trading are concentrated into a single Group. Here, the broker members of the
exchange are both the owners and the traders on the exchange and they
further manage the exchange as well. This at times can lead to conflicts of
interest in decision making. A demutualised exchange, on the other hand, has
all these three functions clearly segregated, i.e. the ownership, management
and trading are in separate hands.

10

COMPANY PROFILE
The securities and trading business is brought to you by Tata securities limited, a wholly owned
subsidiary of Tata capital limited. A Tata security limited is engaged in the business of providing
broking and distribution services to both retail and institutional customers.

Tata securities limited distributes third party investment products and offer stock broking
services in its capacity as a member of the Bombay stock exchange limited (BSE), the national
stock exchange of India limited (NSEIL) and association of mutual funds of India (AMFI). Tata
securities limited is also a depository participant with the central depository services (India)
limited (CDSL) and national securities Depository limited (NSD)

11

TATA CAPITAL
Tata Capital is a finance company that fulfills the financial needs of retail and institutional
customers in India. It was established in 2007 as a wholly owned subsidiary of Tata Sons and is
 registered with the Reserve Bank of India as a systemically important non-deposit taking non-
banking financial company (NBFC).
The company is focused on providing multiple financial services through an extensive network
of over 1,000 customer touch-points covering tier I, tier II and tier III cities.

Areas of business
Tata Capital has financial products and services in the following seven sectors:

1. Distribution and broking: Third-party investment products, equity and commodity trading
for retail and institutional customers.
2. Retail finance: Passenger and commercial vehicle loans, used car loans, personal loans,
home loans, credit cards and consumer durable loans for retail customers.
3. Commercial finance: Financial products for small and medium enterprises and project
finance for capital equipment and infrastructure.
4. Investment banking: Advisory and debt and equity market products for corporate and small
and medium enterprises.
5. Private equity: Investments in India and other countries.
6. Wealth management: Suite of advisory and investment offerings for high net worth
individuals.
7. Rural finance: Relevant financial products for rural customers, including financing of farm
equipment, agricultural inputs and agricultural enterprises.

The company has entered into an understanding with Japan-based Mizuho Securities Co to
promote an alliance in private equity, investment banking including cross border merger and
acquisition, securities business including broking and distribution, structured finance and other
business areas such as wealth management. It has also entered into an understanding with
Equifax Inc and CRISIL to develop plans to create a credit information company in India.

12
 Joint ventures, subsidiaries, associates

1. Tata Securities (TSL): A wholly owned subsidiary of Tata Capital Limited engaged in retail
and institutional distribution and broking. TSL distributes third-party investment products
and offers stock broking services of buying, selling or dealing in securities, including futures
and options, in its capacity as a member of the Bombay Stock Exchange and the National
Stock Exchange. TSL is also a depository participant.
2. Tata Capital Markets (TCML): A wholly owned subsidiary of Tata Capital engaged in
debt and equity capital markets and M&A advisory. TCML has a category I merchant
banking license from the Securities and Exchange Board of India.
3. E-Next: A KPO unit specializing in the area of financial services; owned by Tata Capital,
Tata Sons and others.
4. Tata Capital also owns around 4 per cent of equity capital of Development Credit Bank, a
growing private sector bank.

Location
The company is headquartered in Mumbai, India.

13
MANADATORY DOCUMENT:-

1. PROOF FO IDENTITY (For individual /Karta / Sole proprietor / Authorized person (s) for
Partnership, corporate and Trust)
Photocopy of PAN card

2. PROOF OF ADDRESS (For individual / Karta / Sole proprietor / Authorized person (s)
for Partnerships, Corporate and Trust)
Photocopy of any one of the following:
Passport, Voter ID Card, Driving license, Bank Passbook, Rent Agreement, Ration Card,
Current Telephone Bill, Current Electric Bill, Flat Maintenance Bill, and Certificate Issued
by employer registered under MAPIN, Insurance Policy.

3. BANK AND DP PROOF:

1. Letter from clients banker certifying the account number and the period from
which the accounts in operation as per prescribed format.
2. Copy of a pas book / bank statement containing name of the client
3. Copy of current transaction statement / holding statement / certification by DP
containing the name of DP and client

4. PROOF OF INCOME AND ASSETS:

1. Copy of the salary of the constituent for the last month

2. Income tax statement for the last 2 financial years
3. Assets liability statement
4. Copy of the values certificate in case of immovable property

5.FOR MINORS:

In additional to the abovementioned documents, the following documents would also be

required for minors.
1.Birth certificate of Minor.
14
 1. ADDITIONAL DOCUMENTS FOR NON-INDIVIUALS:

1. Copy of the balance sheet for the last 2 financial years (copies of annual balance sheet to
be submitted every years)
2. Copy of latest share holding pattern including list of all those holding more than 5% in the
share capital of the company, duly certified by the company secretary/ whole time
Director/MD. (copy of updated shareholding patterns to be submitted every year)
3. Copies of the memorandum and articles of association in case of a company / body
corporate or partnership deed in case of a partnership firm
4. Copy of the Resolution of Board of Directors approving participation in equity /
derivatives/ debts trading and naming authorized persons for dealing in securities.
5. Photographs of partners/whole time directors, individual promoters holding 5% or more,
either directly or indirectly, in the shareholding of the company and of persons authorized
to deal in securities.
6. Net worth certified by Chartered accountant.
7. Declaration on letterhead of firm as per prescribed format for sole proprietorship and
partnership Firms.

15
 TATA SECUIRITIES LTD.
World class services that we offer for you:

1. DEMAT A/C opening is free and after 1 year annual maintenance charge (AMC) Rs/-
200 only.
2. Trading software provided to its costumers is made by TATA CONSULTANCY
SERVICES (TCS).
3. Calls made by TATA dealer hits 85% to 90%
4. Online Pay In-Pay out by self if you have trading software.
5. All market info. Regarding shares will notify you by calls, messages and email.
6. Providing one stock dealer.

Our Brokerage rates:

INTRADAY DELIVERY

.03 paisa (Flexible) .30 paisa (Flexible)

Limits 4-6 times Limits 4-6 times

Documents needed for opening DEMAT A/C are:-

1. PAN card.
2. Address proof (voter ID, driving license, aadhar card)
3. One Photograph passport size.
4. 6 months bank statement.
5. Cheque with margin.

16
DEMAT SERVICES

A Tata securities is a registered member (Depository participant) of CDSL.

In this system, physical security holding are converted into electronic (or in other words,
dematerialized) holdings.

Why Tata securities Demat Account?

1. Demat A/C free open.

2. Demat access through internet and phone.
3. Portfolio valuation on the account statements.
4. Online execution of transactions at branches.
5. Special rates for stock market intermediaries and sub brokers.
6. Transaction update from back-office four times a day.

Transfer of shares and settlements

Transfer and settlements have never been easy as it under the depository system. All that is
required is an instruction slip from you. If you are selling securities then it has to be a delivery
instruction slip. If you are purchasing securities it has to be a receipt instruction slip or standing
instruction for credit.

Receipt of Corporate Benefits

Even securities establishment like bonus and right can be credit to your Demat account
electronically. All you have to do is choose the right option in the share application from. Crash
benefits like dividend and interest will, however be forward to you directly and not through the
depository.

17
Holding & Transaction Statements

We provide statements of holding cum transaction every month at Zero cost.

Dematerialization of shares

At you request we arrange to convert your physical holding into electronic from. To do this
would require opening an account with CDSL through us called Beneficiary Account in the
name and style in which the shares are held and lodge the share certificates with us accompanied
by a dematerialized request from, separate for each scrip.

You are required to only make sure that CDSL has admitted that scrip for dematerialization. An
up to date list will be provided to you who will be constantly updated.

Dematerialization

You have the option to convert your electronic shares back to physical shares.

Pledge-Hypothecation

You can also avail against your electronic shares. This process is also much faster than in the
case of physical shares

18
WHY CHOOSE US?

CLIENT FOCUS

1. Client relationship from the core of our business. We value each client, no matter what
size, as a long-term relationship. And we seek to provide unmatched services to each
client and place him as a partner at the center of everything we do.

2. From the very beginning of the relationship, we work closely with every client to identify
his financial goals and risk tolerance levels and leverage our strength of the product
offering, research and financial strength to help achieve his goals. In the process, we
become a professional partners, creating opportunity, and adding value and transform
vision into reality.

Diverse services offering

3. In addition to traditional broking services, we are also equipped to handle commodity

trading facility as well as currency derivatives and have access to a wide range of
financial services like IPOs, mutual funds and insurance.

Timely services

4. In an increasingly competitive environment, clients today require personalized solution

and greater flexibility and responsiveness than ever before. Our professionals are always
on call. We provide them services throughout the year and not just at the end of the
year. We believe such service is essentials for delivering solution and constructive
relationship. 19
Able team

5. We have developed a strong and enduring team by recruiting from leading graduate and
postgraduate universities and promoting from within. Our team work together to provide
superior results to our client. At the same time, each of our clients is assigned a specific
team member who owner the relationship, providing continuity, responsiveness and a
point of easy access to the firm.

Culture

6. We strive to maintain standards at all times and lay emphasis on honesty, integrity and
confidentiality. We speak and act to ensure transparency at all levels and in everything
we do.

Financial strength

7. The strength of our balance sheet is such that it gives greater confidence to all our retail
and institutional clients in detail with us. The financial strength of the group helps in
future building the network and infrastructure to cater to the larger market.
Back office:

For back office operations, we use the lidha Didha system of Apex Soft cell Pvt. Ltd. This is one
of the top most back office software in the industry. It has the capacity to process over one lakh
traders in a five minute frame. Our operation teams has an easy-to-navigate client login system,
which is used to generate activity reports, short-terms and long-term tax reports, holding and
portfolio valuation reports as well as trading to delivery activity reports. We also have the
requisite infrastructure needed to handles STP, upload and download and download information
to or from exchanges, bank and depositories, support units to ensure delivery notes, bills and
ledgers of trading accounts and cash management services for efficient and effective fund
management within the group. 20
Client interface: We have trading terminal (both direct and indirect), online monitoring,
control terminal (administration terminals) and back office support terminal (settlement terminal)
across all location and centers.
We have Indias best single screen Multi Exchanges Trading Software platform. Our entire
centers across the country are connected through our own network, leased ISDN lines and LAN
network, MPLS and internet.
The high-end IBM serves with sophisticated security features that we use caters to trading points
across the country. This also gives u rte advantage of scalability in terms of location and size of
our planned operations. We provide telephonic and chat support for technical and functional
issues of branches, franchises and all our clients. Our websites www.Tata securities.com is
comprehensive and provides online feeds, net trading and provides online feed, net trading
portfolio tracking tool. Investors also have access to a wide range of financial news, information
and various research reports facilitating quick decision-making.

Our online trading portal at www.Tata securities.com is equipped with facilities like all segment
broadcasts, multi-features graphs, online payment gateways and automatic password mailer
utility for better security. It user-friendly navigation allows easy viewing of trading accounts,
depository accounts and research reports, which are linked to the trading platform.

The website also has a provision for creating portfolios and monitoring them on a regular basis.
Our wealth trackers module helps investors in getting ready updates n their investment so that
they can know the changing trends of the markets and the impact of the same on their portfolio.

21
Internal control:

Compliance and internal control play a major role in determining business strategies as well as
day-to-day operation of the group. A well-equipped risk management department ensures that
the delinquency rates are minimal, while efficient risk management software provides online
MTM margin data to branches and franchisees. Our efficient back-up system and software have
been developed specially for branches and channel partners with a capacity to handle numerous
transactions. Our online position monitoring system ensures better risk management and
surveillance from our head office as well as branches and franchises

Experienced professional:

Our teams of professional consist of individual with significant experience in securities trading,
market structure, trading technology and portfolio management. They have a strong experience
in trade execution and understanding of order flow dynamics. This combined with technical
analysis of market momentum, help our clients to determine the price at which they buy and /or
sell. We believe, we are the first choice for our clients because we among the very best at trade
executive solution and assets management services. At Tata securities, each and every
professional is focused on turning the initial trade or investment into a collaborative, person-to-
person relationship that keeps delivering true added value.

Human Resources:

Human resources are the key to any services sectors industry. We have a strong and vibrant
workforce in every field or our activity, be it research, system, accounts, marketing or
networking. With the manpower strength of over 1100 employees, the Company is managed by a
highly motivated, qualified & talented team of professional qualified CAs, MBA, s, Engineers,
etc with proven track records.

22
Technology:

Stock-broking being a process intensive activity, issues such as speed, accuracy, round-the-clock
system availability and system securities are of paramount importance and technology forms the
backbones of the business.

This is why Tata securities are technology driven. We boast of state-of-the-art technology and an
in-house team of highly competent software and networking engineers who constantly review
system and procedures to ensure operational efficiency.

All our branches are connected through Wide Area Network (WAN) and are served by a
centralized back office processing system, which enables clients to obtain up to date information
online at the click of a button.

Customer Focus:

Despite a rapidly expanding client base and a dizzying increase in transaction volumes, each
client at Tata securities is special. We specialize in building long term relationship with our
customers by providing them with the four things they desire most, viz., speed, convenience,
reliability and personalized services.

Our continuous strive to provide best services to our clients, results in receipt of not a single
Arbitration Award against the company since its inception.

23
WIDE OPTION WHILE TRADING:

A product for every need:

4. A Tata security is the most comprehensive website, which allows you to invest in shares,
mutual funds, derivatives (Future and Option) and other financial products. Simply put,
we offer you products for every investment need of yours.

Trading in shares:

5. A Tata security offers you various options while trading in shares.

Cash trading:

6. This is a delivery based system, which is generally done with the information of taking
delivery of shares or monies.

Margin Trading:

You can also do an intra-settlement trading up to 3 to 4 times your available funds, where in you
take long buy/short sell position in stocks with in the intention of squaring off the position within
the same day settlement cycle.

In margin trading, you take buy/sell position in stocks(s) with the intention of acquiring off the
position within the same settlement cycle. If, during the course of the settlement cycle, he price
moves in your favor (rises in case you have a buy position or falls in case you have a sell
position), you make profit. In case you have the option to take/give delivery of buy/sell position
respectively if you have sufficient cash/securities to do so. Normally to buy shares, you have to
place (ensure availability of limit) 100% of the order value, while to sell shares, you need to have
shares in your Demat account. However, margins are blocked only to safeguard any adverse
price movement.
24
Margin PLUS Trading:

7. Through Margin PLUS you can do an intra-settlement trading up to 10 times your

available funds, where in you take long buy/sell position in stock with the intention of
squaring off the position within the same days settlement cycle. Margin PLUS will give
a much higher leverage in your limits.
8. Margin PLUS is an order placement feature where you can take a position at market price
and also place a cover order for the position specifying the SLTP and the limit price. This
will minimize the loss cover at the time of taking the position itself. There by it gives a
clear view of maximum downside involved in a particular position at a particular price,
Tata securities wont levy a normal margin ranging from 21% to 50%. It would block he
maximum loss which customer can suffer.

Spot Trading:

9. This facility can be used only for selling you is demitting stocks which already exist in
your Demat account. When you are looking at an immediate liquidity option, cash on
spot may work the best for you, on selling shares through cash on spot, money is
certified to your bank a/c the same evening & not on the exchange payout date.

BTST:

10. Buy today sell tomorrow (BTST) is a facility that allows you sell shares even on 1st and
2nd day after the buying order date, without you having to Waite for the receipt of shares
into your Demat account.

Call N Trade:

11. Call N Trade allow you call on a local number in your city & trade on the telephone
through our customer services Executive.
12. Trading in NSE/BSE: through Tata securities you can trade on NSE and BSE.
25
Market order:

13. This is an order to buy sell securities at the best price obtainable in the market at the time
it is matched by the exchange. Therefore, change of its getting executed are better. In
case of market order for NSE, all market order placed which are not executive fully; it
becomes a limit order for the balance quantity at the last traded price.

Market Order in BSE: Explanation:

Market order can be placed only during market hours (i.e., when the Exchanges is open for
trading).You could trade by placing market orders during market hours that allows you to trade
at the best obtainable price in the market at the time of execution of the order.

Limit Order:

Limit Order is an order to buy or sell securities in which you specify the maximum price per unit
in case of a buy order and the minimum price per unit in case of sell order. The actual transaction
can be at a price more favorable than the price specified.

Allow you to place a buy/sell order at a price defined by you. The execution can happen at a
price more favorable than the price, which is defined by you, limit orders can be placed by you
during holidays & non market hours too.

Online confirmation of Order and trade:

You get online confirmation of orders and trades- the status of any order is updated on real-time
basis in the Order Book. As soon as you place your order they are validated by the system and
sent to the exchange for execution. The entire process is fully automation and there are no
manual interventions.

26
GTC, GTD and IOC Order:

A Good Till cancelled (GTC) order remains in the system until the trading members cancels it.
However, the system cancels this order if it is not trade within a number of days parameterized
by the Exchanges. A Good Till Days/Date (GTD) order allows the user to specify the number of
days/date till which the order should stay in the system if not executed. The maximum number of
days for which the GTC/GTD order can remain in the system is notified by the exchange from
time to time after which the day/date on which the order is placed and inclusive of holidays. An
immediate or cancel (IOC) order allows the user to buy or sell a security as soon as the order is
released into the system, falling which the order is cancelled from the system. Partial match is
possible for the order and the unmatched portion of the order is cancelled immediately.

Disclose Quantity (DQ) Order:

Normally, the order quantity is disclosed in full to the market. An order with a disclosed quantity
(DQ) condition/attribute allows the trading members to disclose only a part of the order quantity
to the market. For example, an order of 1000 with a disclosed quantity condition of 200 will
mean that 200 is displaced to the market at a time. After this traded, another 200 is automatically
released soon till the full order is executed. DQ (Disclosed Quantity) should not be less that 10%
of the order quantity and at the same time should not be greater than or equal to the order
quantity.

Stop Loss Order:

A stop loss order allows the client to place an order which gets activated only when the market
price of the relevant securities reached or crosses a threshold price specified by the investors in
the form of stock loss trigger price. When a stop loss trigger price (SLTP) is specified in a limit
order, the order becomes one which is conditional on the market price of the stock crossing the
specified SLTP. The order remains passive (i.e. not eligible for execution) till the condition is
satisfied. Once the last traded price of the stock reached or surpasses the SLTP, the order
becomes activated and then on behaves like a normal limit order. It is used as a tool to limit the
maximum loss on a position.

27
Stop Loss by Order:

A short sell reliance shares at Rs. 325 in experience that the price will fall. However, in the
event the price rises above his buy price A would like to limit sell order specifying a stock loss
trigger price Rs. 305 and a limit price of Rs. 300.

Trade in derivatives:

Future:

Through Tata securities you can now trade in index and stock futures on the NSE in future
trading, you take buy/sell position in index or stock (S) contract having a longer contract period
of up to 3 month.

Trading in FUTURE is simple if, during the course of the contract life, the price moves in favor
(i.e. rises in case you have a bye position or sell in case you have a sell position), you make a
perfect. Presently only selected stock, which meet the certain liquidity and volume, have been
enabled for future trading. Calculate index and now your margin are tools to help you in
calculating your margin requirement and also the index & stock price movement.

Option:

An option is a contract, which gives buyer the right to buy or sell shares at a specific prices, on a
before a specific date. For this, the buyer has to pay to the seller some money, which is called
premium. There is now obligation on the buyer to complete the transaction if the price is not
favorable to him. To take the buy/sell position on index/stock option, you have to place certain %
of order value as margin. With option trading, you can leverage on your trading limit buy taken
buy/sell position much more that what you could have taken in cash segment.

28
The buyer of a call option has the right but not the obligation to purchase the underlying asset at
the specified strike price buy paying a premium whereas the seller of the call has the obligation
of selling the underlying asset at the specified strike price.

The buyer of a put option as the right but not the obligation to sell the underlying asset at the
specified strike price paying a premium whereas the seller of the put has the obligation of buying
the underlying the asset at the specified price. Buy paying lesser amount of premium, you can
create position order option and take advantage of more trading opportunities.

Switch:
To suit your changing needs you may wish to shift monies between different schemes. You can
switch your monies online form one schemes to another in the some fund family without any
hassles.

Systematic investment plans (SIP)

SIP allows you to invest a certain some of money over a period of time periodically. Just fill in
investment amount, the period of investment and the frequency of investing and submit. We will
do the rest for you automatically investing periodically for you.

Systematic withdrawal plan:

This allows you to withdraw or certain some money over up period of time periodically.

Transfer-in: we can convert to existing mutual funds into electronic more through a transfer-in
request.

29
IPOS and BONDS Online:

You can also invest in initial public offers (IPOs) and bonds online without going through the
hassles of filling any application form/paperwork.

Get in-depth analysis for new IPOs issue (initial public offering) which are about to hit the
market and analysis on these. IPO calendar, recent IPO listing, prospectus/offer document, and
IPO analysis are few of the features, which help you, keep

You can also invest in initial public offers (IPOs) and bonds online without going through the
hassles of filling any application form/paperwork. Get in-depth analysis for new IPOs issue
(initial public offering) which are about to hit the market and analysis on these. IPO calendar,
recent IPO listing, keep on talk of the IPO markets

30
 Issue of Shares
Why do companies need to issue shares to the public?
Most companies are usually started privately by their promoter(s). However, the
promoters' capital and the borrowings from banks and financial institutions may
not be sufficient for setting up or running the business over a long term. So
companies invite the public to contribute towards the equity and issue shares to
individual investors. The way to invite share capital from the public is through a
'Public Issue'. Simply stated, a public issue is an offer to the public to subscribe
To the share capital of a company. Once this is done, the company allots shares
to the applicants as per the prescribed rules and regulations laid down by SEBI.
What are the different kinds of issues?
Primarily, issues can be classified as a Public, Rights or Preferential issues
(also known as private placements). While public and rights issues involve a
detailed procedure, private placements or preferential issues are relatively
simpler. The classification of issues is illustrated below:
Initial Public Offering (IPO) is when an unlisted company makes either a fresh
issue of securities or an offer for sale of its existing securities or both for the first
time to the public. This paves way for listing and trading of the issuer's
securities.
A follow on public offering (Further Issue) is when an already listed
company makes either a fresh issue of securities to the public or an offer for
sale to the public, through an offer document.
Rights Issue is when a listed company which proposes to issue fresh
securities to its existing shareholders as on a record date. The rights are
normally offered in a particular ratio to the number of securities held prior to the
issue. This route is best suited for companies who would like to raise capital
without diluting stake of its existing shareholders.

31
A Preferential issue is an issue of shares or of convertible securities by listed
companies to a select group of persons under Section 81 of the Companies
Act, 1956 which is neither a rights issue nor a public issue. This is a faster way
for a company to raise equity capital. The issuer company has to comply with
the Companies Act and the requirements contained in
the Chapter pertaining to preferential allotment in SEBI guidelines which interalia
include pricing, disclosures in notice etc.
Classification of Issues
What is meant by Issue price?
The price at which a company's shares are offered initially in the primary
market is called as the Issue price. When they begin to be traded, the
market price may be above or below the issue price.
What is meant by Market Capitalisation?
The market value of a quoted company, which is calculated by multiplying
its current share price (market price) by the number of shares in issue is
called as market capitalization. E.g. Company A has 120 million shares in
issue. The current market price is Rs. 100. The market capitalisation of
company A is Rs. 12000 million.

What is the difference between public issue and private placement?

When an issue is not made to only a select set of people but is open to the
general public and any other investor at large, it is a public issue. But if the
issue is made to a select set of people, it is called private placement. As per
Companies Act, 1956, an issue becomes public if it results in allotment to 50
persons or more. This means an issue can be privately placed where an
allotment is made to less than 50 persons.

32
What is an Initial Public Offer (IPO)?
An Initial Public Offer (IPO) is the selling of securities to the public in the
primary market. It is when an unlisted company makes either a fresh issue of
securities or an offer for sale of its existing securities or both for the first time to
the public. This paves way for listing and trading of the issuer's securities. The
sale of securities can be either through book building or through normal public
issue.
Who decides the price of an issue?
Indian primary market ushered in an era of free pricing in 1992. Following this,
the guidelines have provided that the issuer in consultation with Merchant
Banker shall decide the price. There is no price formula stipulated by SEBI.
SEBI does not play any role in price fixation. The company and merchant
banker are however required to give full disclosures of the parameters which
they had considered while deciding the issue price. There are two types of
issues, one where company and Lead Merchant Banker fix a price (called fixed
price) and other, where the company and the Lead Manager (LM) stipulate a
floor price or a price band and leave it to market forces to determine the final
price (price discovery through book building process).
What does 'price discovery through Book Building Process' mean?
Book Building is basically a process used in IPOs for efficient price discovery. It
is a mechanism where, during the period for which the IPO is open, bids are
collected from investors at various prices, which are above or equal to the floor
price. The offer price is determined after the bid closing date.

33
 Importance Of Stock Market:

Function and purpose

The stock market is one of the most important sources for companies to raise money. This
allows businesses to be publically traded or raised additionally capital for expansion by selling
share of ownership of the company in a public market.

The liquidity that an exchange provides affords investors the ability to quickly and easily sell
securities. This is an attractive feature of investing in stocks, compared to other less liquid
investment such as real estates.

History has shown that the price of shares and other assets is an important part of the dynamic of
economies activity, and can influence or be an indicator of social mood.

An economy where the stock market is on the rise is considered to be an up and coming
economy.

In fact, the stock market is often considered the primary indicators of a countrys economics
strength and development. Rising share prices, for instance, tend to be associated with increased
business investment and vice versa.

Share prices also affect the wealth of household and their consumption.

Therefore, central banks tend to keep an eye on the control and behavior of the stock market and,
in general, on the smooth operation of financial system functions. Financial stability is the raison
dtre of central banks.

34
Exchanges also act as the clearinghouses for each transaction, meeting that they collect and
deliver the shares, and guarantee payment to the seller of a securities. This eliminates the risk to
an individual buyers or seller that the counterparty could default on the transaction.

The smooth functioning of all these activities facilities economies growth in that lower costs
enterprise risks promote the production of goods and services as well as employment.

In this way the financial system contribution to increased prosperity. An important aspect of
modern markets, however, including the stock markets, is absolute discretion.

For example, in the USA stock we see more unrestrained acceptance of any firm than in similar
markets. Such as, Chinese firms with no significant value to American society to just name one
segment.

This profit USA banker on Wall Street, as they reap large commissions from the placement, and
the Chinese company which yields funds to invest in china.

Yet accrues no intrinsic value to the long-term stability of the American economy, rather just
short-term profits to American business man and the Chinese; although, when foreign company
has a presence in the new market, there can be benefits to the markets citizens.

Conversely, there are very few large foreign corporation listed on the Toronto Stock exchange
TSX, Canadas largest stock exchange. This discretion has insulated Canada to some degree to
worldwide financial condition.

In order for the stock markets to truly facilitate economys growth via lower costs and better
employment, great attention must be given to the foreign participants being allowed in. Relation
of the stock market to the modern financial system.

The financial system in most western countries has undergone a remarkable transformation. One
features of this development is disintermediation. A portion of the funds involved in saving and
financing bank lending and deposit operation.

35
The general publics heightened interest in investing in the stock market, either directly or
through mutual funds, has been an important component of this process. Statistics show that in
recent decades share have made up an increasingly large proportion of households financial
assets in many countries.

In the 1970s, in Sweden, deposit account and other very liquid assets with little risk made up
almost 60 percent of households financial wealth, compared to less than 20 percent in the 2000s.

The major part of this adjustment in financial portfolio has directly to shares but a good deal now
take the form of various kinds of institutional investment for groups of individuals, e.g., pension
funds, mutual funds, hedge funds, insurance investment of premiums, etc.

The trend towards form of saving with a higher risk has been accentuated by new rules for most
funds and insurance, permitting a higher proportion of shares to bonds.

Similar tendencies are to be found in other industrialized countries. In all developed economies
system, such as the European Union, the United State, Japan and other developed nations, the
trend has been the same: saving has moved away from traditional (government insured) bank
deposits to more risky securities of one sort or another.

36
 The Stock Market, Individual Investors, and Financial Risk:

Riskier long-term saving required that an individual possess the ability to manage the associated
increased risks. Stock prices fluctuated widely, in marked contrast to the stability of (government
insured) bank deposits or bonds.

This something that could affect not only the individual investors or households, but also the
economy on a large scale. The following deals with some of the risks of the financial sectors in
general and the stock market in particular.

This is certainly more important now that so many newcomers have entered the stock market, or
have acquired other risky investment (such as investment property, i.e., real estate and
collectables.)

With each passing year, the noise level in the stock market rises. Television commentators,
financial writers, analysis, and market strategies are all over taking each other to get investors
attention.

At the same time, individual investors, immersed in chat rooms and message boards, are
exchanging questionable and often misleading tips.

Yet, despite all this available information, investors find it increasingly difficult to profit. Stock
prices skyrocket with little reasons, then plummet just as quickly.

And people who have turned to investing for their childrens education and their own retirement
become frightened. Sometimes there appears to be no rhyme or reason to the market, only folly.

This is a quote from the prefaces to a published biography about the long-terms value oriented
stock investors warren Buffett.

37
 The behavior of the stock market:

From experiences we know that investors may temporarily move financial prices away from
their long terms aggregate price trend (positive or up trends are referred to as bull markets:
negative or down trends are referred to as bear markets.)

Over-reaction may occur so that excessive optimism (euphoria) may drive prices unduly high or
excessive pessimism may drive unduly low. New theoretical an empirical arguments have since
been put forward against the notion that financial markets are generally efficient (i.e., in the
sense that prices in the aggregate tends to follow a Gaussian distribution.)

(But this largely theoretic academic viewpoint- knows as hard EMH- also predicts that little or
no trading should take place, contrary to fact, since prices are already at or near equilibrium,
having priced in all public knowledge.) The hard efficient-market hypothesis is sorely tested by
such events as the stock market crash in 1987, when the Dow Jones index plummeted 22.6
percentthe largest-ever one-day fall in the United States.

This events demonstrated that share prices can fall dramatically even though, to this day, it is
impossible to fix a generally agreed upon definite cause: a thorough search failed to detect any
reasonable development that might have accounted for the crash. (But note that such events are
predicted to occur strictly by chance, although very rarely.)

It seems also to be the case more generally that many price movements (beyond that which are
predicted to occur randomly) are not occasioned by new information: a study of the fifty largest
one-day share prices movements in the United States in the post-war period seems to confirm
this.

However, a soft EMH has emerged which does not required that prices remain at or near
equilibrium, but only that market participants not be able to systematically profits from any
momentary market inefficiencies.

38
Various explanation for such large and apparently non-random prices movement have been
promulgated. For instance, some research has shown that change in estimated risks, and the use
of certain strategies, such as stop-loss limit and value at Risk limits, theoretically could cause
financial markets to overcorrect.

But the best explanation seems to be that the distribution of stock market prices is non-Gaussian
(in which case EMH, in any of its current forms, would not be strictly applicable.)

Other research has shown that psychological factors may result in exaggerated (statically
anomalous) stock prices movement (contrary to EMH which assumes such behaviors cancel
out).

Psychological research has demonstrated that peoples are predisposed to seeing patterns, and
often will perceive a pattern in what is, in fact, just noise, (something like seeing familiar shapes
in clouds or ink blots.)

In the present context this means that a succession of good new items about a company may lead
investors to overreact positively (unjustifiably driving the prices up). A period of good returns
also boosts the investors self-confidence, reducing his (psychological) risk threshold.

Another phenomenonalso from psychologythat works against an objective assessment is

group thinking. As social animal, it is now easy to stick to an opinion that differs markedly from
that of a majority of the group.

An example with which one may be familiar is the reluctance to enter a restaurant that is empty;
people generally prefer to have their opinion validated by those of other in the group.

In one paper the authors draw an analogy with gambling. In normal times the market behaves
like a game of roulette; the probabilities are known and largely independent of the investment
decision of the different players.

39
In times of market stress, however, the game becomes more like poker (herding behavior takes
over). The players now must give heavy weight to the psychology of other investors and how
they are likely to react psychology.

The stock market, as any other business, is quite unforgiving of amateurs. Inexperienced
investors rarely get the assistance and support they need.

In the period running up to 1987 crash, less than 1 percent of the analysis recommendation had
been to sell (and even during the 2000-2002 bear market, the average did not above 5%).

In the run up to 2000, the media amplified the general euphoria, with reports of rapidly rising
share prices and the notion that large sums of money could be quickly earned in the so called In
the run up to 2000, the media amplified the general euphoria, with reports of rapidly rising share
prices and the notion that large sums of money could be quickly earned in the so called new
economy stock market.

(And later amplified the glom which descended during the 2000-2002 bear market, so that by
summer of 2002, prediction of a DOW average below 5000 were quite common).

Irrational behavior:
Sometimes the market seems to react irrationally to economic or financial news, even if that
news is likely to have no real effect on the technical value of securities itself.

But this may be more apparent than real, since often such has been anticipated, and a counter
reaction may occurs if the news is better (or worse) than expected.

Therefore, the stock market may be swayed in either by press releases, rumors euphoria and
mass panic; but generally only briefly, as more experienced investors (especially the hedge funds
quickly rally to take advantage of even the slightest, momentary hysteria.

Over the short-term, stock and other securities can be battered or buoyed by any number of fast
market-changing events, making the stock market behavior difficult to predict. Emotion can
drive prices up and down, people are generally not as rational as they think, and the reasons for
buying and selling are generally obscure.

40
Behaviorists argue that investors often behave irrationally when making investment decision
thereby incorrectly pricing securities. This causes market inefficiencies, which, in turn, are
opportunities, to make money.

However, the whole notion of EMH is that these non-rational reactions to information cancel out,
leaving the prices of stock determined. The Dow Jones industrial Average biggest gain in one
day was 936.42 points or 11 percent, this occurred on October 12, 2008.

Crashes:
Robert shillers plot of the S&P composite Real prices, Earning, Dividends, and interest Rates,
from irrational exuberance, 2nd. In the prefaces to this edition, Shiller warns, The stock market
has not come down to historical levels: the prices-earnings ratio as I defined it in his book is still,
at this writing [2005], in this mid-20s, far higher than the historical average..people still place
too much confidence in the market and have too strong a belief that paying attention to the
gyration in their investment will someday make them rich, and so they do not make conservative
preparation for possible bad outcomes.

Price-Earnings ratios as predictors of twenty-year returns based upto the plot by Robert shiller.
The horizontal axis shows the real price-earnings ratio of the S&P composite stock price index as
computed in Irrational Exuberance (inflation adjusted price divided by the prior ten-year mean of
inflation-adjusted earning).

The vertical axis shows the geometric average real annual return on investing in the S&P
composite stock prices index, reinvesting dividends, and selling twenty years-did do well when
prices were low relative to earnings at the beginning of the ten years.

Long-term investors would be well advised, individually, to lower their exposer to the stock
market when it is high, as it has been recently, and get into the market when it is low.

Stock market crash:

A stock market crash is often defined as a sharp dip in share prices of equities listed on the stock
exchanges. In parallel with various economics factors, a reason for stock market crashes is also
due to panic and investing publics loss of confidence. Often, stock market crashes end
speculative economics bubbles.

There have been famous stock market crashes that have ended in the loss of billions of dollars
and wealth destruction on a massive scale. An increasing number of people are involved in the
stock market, especially since the social security and retirement plans are being increasingly
privatized and linked to stocks and bonds and other elements of the market.

41
There have been a number of famous stock market crashes like the Wall Street crashes of 1929,
the stock market crash of 1973-4, the Black Monday of 1987, the Dot-com bubble of 2000, and
the stock market crashes 2008.

One of the most famous stock market crashes started October 24,1929 on Black Thursday. The
Dow Jones industrial lost 50% during this stock market crash. It was the beginning of the Great
depression.

Another famous crash took place on October 19, 1987 --- Black Monday. On Black Monday
itself, the Dow Jones fell by 22.6% after completing a 5 year continuous roses in share prices.
This event not only shook the USA, but quickly spread across the world.

Thus, by the end of October, stock exchanges in Australia lost 41.8%, in Canada lost 22.5%,, in
Hong Kong lost 45.8%, and in Great Britain lost 26.4%. The names, Black Monday and
Black Tuesday are also used for October 28-29, 1929.

This followed terrible Thursday the starting day of the stock market crash in 1929. The crash in
1987 raised some puzzlesmain news and events did not predict the catastrophe and visible
reasons for the collapse were not identified.

This event raised question about many important assumptions of modern economics, namely, the
theory of rational human conduct, the theory of market equilibrium and the hypothesis of market
efficiency.

For some time after the crash, trading in stock exchanges worldwide was halted, since the
exchanges computers did not perform well owing to enormous quantity of trades being received
at one time.

This halt in trading allowed the Federal Reserve System and central banks of other countries to
take measures to control the spreading of worldwide financial crisis.

In the United State the SEC introduction several new measures of control into the stock market
in an attempt to prevent a re-occurrence of the events of Black Monday.

Computer systems were upgrades in the stock exchanges to handle larger trading volumes in a
more accurate and controlled manner. The SEC modified the margin requirement in an attempt
to lower the volatility of common stocks, stock option and the futures markets.

The New York Stock Exchanges and the Chicago Mercantile Exchange introduction the concept
of a circuit breaker. The circuit breaker halts trading if the Dow declines a prescribed number of
points for a prescribed amount of time.

New York Stock Exchange (NYSE) circuit breakers.

42
 Stock market index

The movement of the prices in a market or sections of a market are captured in price
indices called stock market indices, of which there are many, e.g., S&P, the FTSE and the
Euro next indices.

Such indices are usually market capitalization weighted, with the weight reflecting the
contribution of the stock of the index are reviewed frequently to include/exclude stocks in
order to reflects to reflects the changing business environment.

Leveraged strategies

Stock that a traders does not actually own may be traded suing short selling; margin
buying may be used to purchase stock with borrowed funds; or, derivatives may be used
to control large blocks of stock for a much smaller of amount of money than would be
required by outright purchases or sale.

Short selling

In short selling, the traders borrow stock (usually from his brokerage which holds its
clients shares or its own share on account to lend to short sellers) then sells it on the
market, hoping for the price to all.

The trader eventually buys back the stock, making money if the price fell in the meantime
or losing money if it rose; exiting a short position by buying back the stock is called
covering a short position.

This strategy may also be used by unscrupulous traders to artificially lower the price of a
stock. Hence most markets either prevent short selling or place restriction on when and
how a short sale can occur.

The practice of naked shorting is illegal in most (but not all) stock markets.\

43
 Margin buying:

In margin buying, trader borrows money (at interest)to buy a stock and hopes for it to
rise. Most industrialized countries have regulation that requires that if the borrowing is
based on collateral from other stock the trader owns outright, it can be a maximum of a
certain percentage of those other stocks value.

In the United State, the margin requirements have been 50% for many years (that is, if
you want to make a $100 investment, you need to put up$500, and there is often a
maintenance margin below the $500).

A margin call is made if the total value of the investors account cannot support the loss
of the trade.

(Upon a decline in the value of the margined securities additional funds may be requires
to maintain the accounts equity, and with or wit out the margined securities or any others
within the account may be sold by the brokers to protect its loan position. This investors
is responsible for any shortfall following such forced sale).

Regulation of margin requirement (by the Federal Reserve) was implemented after the
crash of 1929. Before that, speculators typically only needed to put up a little as 10% (or
even less) of the total investment represented by the stocks purchased.

Other rules may include the prohibition of free-riding: putting in an order to buy stocks
without paying initially (there is normally a three-day grace period for delivery of the
stock.)

But then selling them (before the three-days are up) and using part of the proceeds to
make the original payment (assuming that the value of the stocks has not declined in the
interim).

44
 New issuance:

Global issuance of equity and equity-related instrument totaled $505 billion in 2004, a
29.8% increase over the $389 billion raised in 2003. Initial public offer (IPOs) by US
issuers increased 221% with 233offering that raised $45 billion, and IPOs in Europe,
Middle East and Africa (EMEA) increased by 333% from $9 billion to $39 billion.

Investment strategies:

One of the many thing people always want to know about the stock market is, How do I
know money investing? There are many different approaches; two basic methods are
classified as either fundamental analysis or technical analysis.

Fundamental analysis refers to analyzing companies by their financial statements founds

in SEC Filing, business trends, general economic conditions, etc.

Technical analysis studies prices action in market through the use of charts and
quantitative techniques to attempt to forecast prices trends regardless of the companys
financial prospects.

One examples of a technical strategy is the Trend following method, used by John W
Henry and risk control and diversification.

Additional, many choose to invent via the index method. One holds a weight or unweight
portfolio consisting of the entire stock market or some segment of the stock market (such
as the S&P 500 or Wilshire 5000).

The principle aim of this strategy is to maximize diversification, minimize taxes from too
frequent trading and ride the general trend of the stock market (which, in the U.S, has
averaged nearly 10% year, compounded annually, since World War II).

45
 Taxation:

According to much national or state legislation, large arrays of fiscal obligation are taxed
for capital gains. Taxes are charged by the state over the transactions, dividends and
capital gains on the stock market, in particular in the stock market.

However, these fiscal obligations may vary from jurisdiction to jurisdiction because,
among other reasons, it could be assumed that taxation is already incorporated into the
stock prices through the different taxes companies pay to the state, or that tax free stock
market operations are useful to boost economic growth.

46
 Objectives of study:

1. To understand & analyze the marketing strategies and analyze online

2. Trading of Tata Securities ltd.

3. To improve the format of daily sales report (DSR)

4. To get the Demat account opened of potential customers in favor of Tata

Securities. Analysis of need and satisfaction of distribution of financial services.

5. To give a brief idea about the benefits available from Mutual Funds investment
and idea of types of schemes available.

6. To discuss about the market trends of Mutual Funds investment.

7. To study some of the mutual funds schemes and analyze them observe the funds
management process of mutual funds.

8. Explore the recent developments in the Mutual Funds in India. To give an idea about the
regulations of Mutual Funds.

47
FINDING AND RECOMMENDATION:

During my project analysis I was very keen to find some key areas which need to be taken care
seriously in the future because these are causing dissatisfaction among distributors.

Most of distribution felt dissatisfaction with their brokers but some of disappointing areas are-

8. More exposure: Most of distributors want some more exposure for them clients from
their share broking companies. A Tata security is now providing super exposure p to 15
of the margin (cash segment) the step like this really creates satisfaction for the
distributors.
9. Brokerage problem: Some companies have very high brokerage chares which create
differences of market share of different companies and also dissatisfaction among
distributors.
10. Fewer offers: Most of companies lag behind in giving time to time offers in order to
attract new customers.

LIMITATIONS:

11. The time constraint was one of the major problems.

12. The study of limited to the different schemes available under the mutual funds selected.
13. The study is limited to selected mutual fund schemes
14. The lack of information sources for the analysis part.

48
Recommendation for the concerned companies:

15. Mass reach- The new and different offers should be communicated to the large value
of potential inventors so that the offers can hit the target.

16. Full information- The companies should reveal all the information regarding any
scheme so that investors can feel free to invest.

17. All risks should be communicated by distributors of financial services-

It is very important for distributors to make the customers aware about all the risks
involved and he could not blame for any loss to the company.

18. Misconceptions- There are many misconceptions in the mind of common people that
Mutual funds, online share trading etc. are only for big ones & they cant enter in this
field and if they will enter they will suffer losses so, by giving example of active
investors various misconceptions should be removed.

19. Simple procedure-many potential investors are computer illiterate so they never try
their hand free.

20. Target rural areas also- many potential investors are also trust in rural areas. They
come to cities (like in Jaipur) for various works. There should some special offers to
attract them in share trading.

21. Employees should be trained- It is very necessary for the employees to give an
effective demo to the client about the use of various services of share broking etc. many
times they fail to make the offer understandable to the client, this is the drawback to be
overcome.
22. Some offers for women should be introduced to get a new share of market.

49
CONCLUSION

The expectations of the customers are regularly increasing because of the increasing competition
and emergence of global market. In such conditions it becomes very necessary for a company to
fulfill all the expectations of the customers and give them a delightful experience.
A Tata securities aims to provide better services by consistently improvement. The study
concluded: - Tata securities Ltd. has better Portfolio Management services than
Other Companies Tata securities Ltd. keeps its process more transparent. Tata securities Ltd. is
giving more returns to its investors. Tata securities charges are less than other stock brokers.
Tata securities are providing daily updates about the stocks information. Investors are looking
for those investment options where they get Maximum returns with less costs. Market is
becoming complex & it means that the individual investor will not have the time to play stock
game on his own. People are less aware about the Services provided by Tata securities

50
BIBLIOGRAPHY:

23. Www. Tata securities.com

24. www.hseindia.com
25. www.tatacapital.com
26. www.google.com
27. From Wikipedia, the free encyclopedia

51